India report

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I Country N DReport IA



Current News Railway Budget 2016: In Poll Season, A Tough Balancing Act for Minister Suresh Prabhu “Rail Minister Suresh Prabhu will walk the tightrope as he presents the Railway Budget at noon today. With elections due in five states, he has to balance populist measures with the cash-strapped Railways’ urgent need for finances to fund modernisation and better passenger facilities. The question being asked hours before the Railway Minister presents his annual budget - will he bite the bullet and raise passenger fares and freight? Junior Rail Minister Manoj Sinha would only say on Thursday morning, “This is the budget to transform the Indian Railways. You have to wait for some time.” This will be the second Railway Budget presented by Mr Prabhu, a 62-year-old Chartered Accountant hand-picked by Prime Minister Narendra Modi to script a turnaround for the Indian Railways, the world’s fourth largest. Last year, he did not raise fares but made headlines by announcing not a single new train. Two senior government officials told Reuters that raising freight tariffs significantly is not on the cards today, and that a steep rise in passenger fares in Thursday’s railway budget is also unlikely as fewer-than-expected travellers catch the train and an industrial slowdown crimps the growth of freight.” -Shuchi Shukla


Country Traits India: Located in South Asia

Capital: New Dehli

Population: 1,276,267,000

Government: Federal Repbulic

Prime Minister: Narendra Modi

Minimum Wage: 93.75 Rupees/Hr

Main Languages: Hindi - 41.03% Bengali - 8.11% Tamil - 5.91% Urdu - 5.01% Gujarati - 4.48% Nepali - 0.28% Sindhi - 0.25%

Gender Breakdown Ratio:

Birth - 1.12 Male/Female 01-14 - 1.14 Male/Female 15-24 - 1.09 Male/Female 25-64 - 1.06 Male/Female 65 - Up - 0.908 Male/Female Total: 1.08 Male/Female

Religions:

Hindu - 80.5% Muslim - 13.4% Christian - 2.3% Sikh - 1.8% Buddhists - 0.8% Jains - 0.4% Others - 0.8% Median Age: 25.1 Years

Ethnic Composition:

Indo-Aryan 72% Dravidian 25% Mongoloid & Other 3%



Import and Export Volume Exports: $311 Billion Imports: $448 Billion Countries India Exports To: United States, United Arab Emirates, Singapore, China, Hong Kong, Saudi Arabia, Netherlands, United Kingdom, Germany, Brazil What does India Export? Petrolium, Gems & Jewelry, Pharma Products, Machinery & Instruments, Readymade Garments, Electronics, Rubber/Glass Products, Cotton, Yarn & Fabrics. Countries India Imports From: China, United Arab Emirates, Saudi Arabia, United States, Switzerland, Iraq, Qatar, Kuwait, Germany, United Kingdom What does India Import? Petrolium Crude, Gold & Silver, Electronics, Pearls & Precious Stones, Organic & Inorganic Chemicals, Coal/Coke/Briquettes, Iron & Steel


Economic Overview GDP Per Capita: 1,820 Labor Force: 502.3 Million -Agriculture: 495 -Industry: 20% -Services: 31% Unemployment: 4.90% Inflation Rate: 2.0% Budget Deficit: 3.9% of GDP Public Debt: 64.9% of GDO Exchange Rate: 1 Indian Rupee = 0.015 USD Main Industries of India: Software, Petroleum Products, Chemicals, Pharmaceuticals, Agriculture, Transporation Equipment, Machinery, Leather, Cement, Mining, Construction


Country Stability Political Narendra Modi’s win as Prime Minister was a major win for the Bharatiya Janata Party. Young Indian’s are very frustrated with the poor government in India and Modi’s goal is to ensure the minorities that they will be safe, secure, and successfu in his India.

Economic In the year 2015, India’s economy grew at an even faster pace than China’s. The rupee has gained value against the US dollar while other countries, like South Africa and Brazil, have lost value. Oil imports are rising and prices falling, which proves to be a big win for businesses and consumers.

Social India increased the attendance rate and expanded the literacy rate of the 7-10 age group over the last few years. As far as healthcare, Narendra Modi is working to grow the pharmaceutical sector in the healthcare industry.

Technology India’s IT industry cost competitiveness is 3-4 times cheaper than the US. India is gaining prominence in the IT world by setting up global firm centres throughout the country. This has gained the attention of major countries that want to make investments in India’s IT industry.

Environmental Transportation and fuel economy standards need major attention in India as road, air, and railway travel is heavily used throughout the country. Also energy costs are high so they are developing mini-power stations to address the situation.


Political Stability Factors India and the US India and the United States hold a strong relationship. In 2015, President Barack Obama became the first US President to be the chief guest of the 66th Republic Day celebrations of India. India and the US held their first ever bilateral dialogue on the UN and multilateral issues in the spirit of the “Delhi Declaration of Friendship” that strengthens and the expands the relationship between these two countries.

Future Government Plans Prime Minister Narendra Modi has many plans to improve India. Modi plans to revamp India’s restrictive business regulations and plans to improve the national infrastructure. If all goes well with Modi’s plan, India could become the next leading player economicaly, financially, and politically.



State of the Textile and Apparel Industry India is one of the world’s largest producers of the textiles and apparel industries. India is the largest cotton producer in the world and the second largest textile manufacturing capacity globally. The Indian textile industry accounts for about 20% of the world’s spindle capacity and 10% of global rotor capacity. India accounts for about 13% of the world’s production of textile fiber and yarn and is the largest producer of jute and cotton, and the largest producer of silk. The Textile Association of India expects textile and apparel exports to reach $80 billion by the year 2020. In India, the textiles sector is teh second largest provider of employment after agriculture. India has a significant lead in terms of labor cost per hour over countries like the US, Hong Kong, Taiwan, South Korea, and China. India and China are currently competing the same premium segment of apparel and home textiles. Given India’s established prescence in the segment, this could gain India a large market share in US apparel imports.


Trade Agreements Signed and In Effect

Date Signed

Entry into Force

APTA

07/31/1975

06/17/1976

India-Sri Lanka FTA

12/28/1998

12/15/2001

Indo-Nepal Trade Treaty

12/06/1991

03/06/2002

03/06/2003

05/13/2003

India-Singapore CECA

06/29/2005

08/01/2005

SAFTA

01/06/2004

01/01/2006

India-Afghanistan PTA

India-Bhutan Trade Agreement 07/28/2006

07/29/2006

India-Chile PTA

03/08/2006

09/11//2007

India-MERCOSUR PTA

01/25/2004

06/01/2009

India-Republic of Korea CEPA 03/23/2006

01/01/2010

ASEAN-India CECA

08/13/2009

01/01/2010

Malaysia-India CECA

02/18/2011

07/02/2011

Japan-India EPA

01/31/2011

08/01/2011


Trade Agreements Signed and In Effect

Negotiation’s Launched

India-Egypt PTA

10/01/2002

India-Israel PTA

01/01/2006

India-EU FTA

06/28/2007

India-SACU PTA

10/06/2007

India-EFTA FTA

01/26/2008

New Zealand-India FTA

04/07/2010

India-Canada EPA

11/16/2010

India-Austrailia FTA

07/28/2011

India-Indonesia CECA

10/04/2011

India-Customs Union of Russia, Belarus, and Kazakhstan FTA

04/03/2013

RCEP

05/09/2013


Country Transportation BY SEA: India has 13 majors ports and 199 minor and intermediate ports along the coastline. These ports play a significant role in improving foreign trade in a growing economy. Ships transporting cargo from India to North America generally has a lead time ranging from three to five weeks.

BY AIR: India has 128 airports throughout the country. The growth of passenger and cargo air traffic has caused a strain on the major airports throughout India. The aviation industry in India is currently the 9th largest in the world.

BY LAND: In India, roads are the most dominant mode of transportation. 85 percent of the country’s passenger traffic and 60 percent of freight is moved via the roads. Along with India’s highways, there is also a major railway.The Indian railways plays a leading role in carrying passengers and cargo across India.



Main Suppliers Orit Apparels Lanka (Pvt) Ltd.

Damco India Pvt, Ltd.

07-02, East Tower, WTC, Echelon Square, Colombo, Sri Lanka, India

Peetal Basti Rampur Rd Moradabad U P 244001

Telephone: +91 9411234670

Telephone: +91 912233088200

Customers: Levi Strauss & Co. Goody’s Ms, L.P. Jones Jeanswear Group Inc.

Customers: Damco Usa Inc. Homegoods Inc. JC Penny Purchasing Corp.

Top Products: Pants, womens wvoven, woven denim pants, mens woven denim pants

Top Products: Cotton, glass, bottles

Classic Knits

Eastman Exp. Global Clothing (P)

Alangadu Mangalam Rd Tirupur Tamil Nadu 6410604 Teindia

591, Sri Lakshmi Nagar, Pitchampalayam Pudur, Tirupur, Tamil Nadu, India 64603

Telephone: +91 914212247488

Telephone: +91 914214301234

Customers: Hanesbrands Inc. Espirit US Distribution Ltd. Hanesbrands Inc. Outerwear Division

Customers: The Gap Inc. Old Navy, Lic Ben Sherman Clothing

Top Products: Cotton, knitted mens boxers, mens boxer briefs

Top Products: Womens clothing, mens clothing, kids clothing


Shipping Resources Asia Pacific Logisitcs

Maersk Line India Pvt. Ltd

Kukreja Plaza, Office No-107, A-Wing, 1st Floor, Sector 11, CBD Belapur, Navi Mumbai, India 400614

Building 9 A Cybercity, DLF Phase 3, Gurgaon, Haryana, 122002

+91 9320204477

+91 783852448

Lead Time - India to Savannah: 29 Days

Lead Time - India to New York: 33 Days

Cost: $3,962 - $4, 2,40

Cost: $3,045 - $3, 460

ZIM World Freight Pvt. Ltd

Jumbo Shipping VOF, India

1211, 12th Floor, Ansal Tower, 38, Nehru Place, New Dehli, Dehli, 110019

S57 Vatika Business Centre, Supreme Business Park, Mumbai, Maharashtra, India 400076

+91 1151674046

+91 2242019139

Lead Time - India to LA: 21 Days

Lead Time - India to Seattle: 23 Days

Cost: $2,975 - $3,340

Cost: $3,155 - $3,780


Lead Time Holiday’s

Independce Day - January 1st Republic Day - January 26th Mahshivratri - March 7th Holi - March 22nd Good Friday - March 25th Easter Monday - March 28th Mahavir Jayanti - April 20th Buddha Purnima (Buddha’s Birthday) - April 21st Eid al-Fitr (End of Ramadan) - July 7th Krishna Janmashtami - August 25th Eid al-Adha (Feast of Sacrifice) - September 13th Mahatma Gandhi’s Birthday - October 2nd Muharram (Islamic New Year) - October 3rd Dussehra (Vijaya Dashami) - October 11th Diwali (Festival of Lights) - October 30th Guru Nanak Jayanti - November 14th Milad un Nabi (Birth of the Prophet Muhammad) - December 12th Christmas Day - December 25th Boxing Day - December 26th

Climate India has a wide variety of climatic regions that range from tropical wet, tropical dry, subtropical humid, and mountain climate. Winter lasts from December to March and this is when India has its coldest weather. Summer, or pre-monsoon season, lasts from April to June. Monsoon season is from July to September and humid temperatures go along with the monsoon weather. Post-monsoon season lasts from October to November. Along with the intense, variety’s of climate changes, India does endure climate-related natural disasters throughout the year. Floods and landslides are common disasters in India. These mainly happen during the monsoon season. During the summer, cyclones can be a problem. The intense heat and rising humidity and unstable air cause these cyclones. Also, India is known to endure droughts and heat waves. These are mainly in the desert regions of India but have caused many deaths, ruined crop fields, and caused water shortages.


Conducting Business In India, it is seen as respectful to do a handshake as a way of greeting. However, Indian’s typically use the namaste (bowing of the head while the hands are palm facing at chest level). It is better for those doing business in India to use the namaste because it shows that they have knowledge of Indian business ettiquette. When dining with potential business partners in India, it is important to remember to wash your hands before the meal, do not sit until you are instructed, never use your left hand, only eat with your right hand, and leave food on your plate. When conducting business meetings in India, they should be planned well in advance but also be done in writing and confirmed over the phone. Remember to not plan meetings on our around any of the national holiday’s. When entering a meeting, puntuality is expected and always greet the senior figure first. It is best to start off meetings with casual conversation but be sure to avoid talking about personal matters or commenting on the poverty and beggars in India. As far as negotiations go, it is important to know that Indian’s must feel like that can trust you before they agree to any kind of negotiation. Make sure to avoid high pressure tactics, avoid confrontation, and do no be forceful. It is rude to just say “no” in India, so if they use the terms “possibly” or “we’ll see”, it is more than likely their way of saying “no”.



Risks and Benefits Risks Lower productivity and cost competitiveness Fragmented industry Flucuation in rupee value Competition from global players Benefits Low cost skilled labor Abundant raw material availability Growing domestic market Presence across value chain


Works Cited http://www.facts-about-india.com/transportation-in-India. php http://www.cci.in/pdfs/surveys-reports/textile-industry-in-india.pdf http://www.makeinindia.com/sector/textiles-and-garments http://web.worldbank.org/archive/website01291/WEB/0__ CO-21.HTM http://fortune.com/2015/01/25/india-the-next-superpower/ https://www.equitymaster.com/research-it/sector-info/textiles/Textiles-Sector-Analysis-Report.asp https://aric.adb.org/fta-country https://panjiva.com/Damco-India-Pvt-Ltd/28295076?q=Women+Apparel https://panjiva.com/Orit-Apparels-Lanka-Pvt-Ltd/1336729?q=Women+Apparel http://www.freightnet.com/directory/p2/cIN/s1.htm


Works Cited http://www.indexmundi.com/india/demographics_profile. html https://en.wikipedia.org/wiki/Demographics_of_India#Ethnic_groups https://www.jahajee.com/shipping-companies/MUMBAI_ INDIA/ http://www.thehindu.com/data/what-do-indias-latest-export-and-import-figures-tell-us/article7326453.ece http://www.tradingeconomics.com/india/exports http://www.theguardian.com/news/datablog/2013/feb/22/ cameron-india-trade-exports-imports-partners http://www.focus-economics.com/countries/india http://www.ibef.org/industry.aspx https://en.wikipedia.org/wiki/Economy_of_India http://profit.ndtv.com/news/budget/article-railway-budget-a-tough-balancing-act-for-minister-suresh-prabhu-1281060?pfrom=home-lateststories


Global Sourcing Chelsea Baldwin


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